Rupinder Rai

Universal life insurance

Universal life insurance

Universal life insurance

Secure the future for your loved ones with the right life insurance policy. Let the experts at Rai Rupinder guide you through all the options available for universal life insurance in Brampton. We can also help you with universal life insurance in Mississauga.

What is universal life insurance?

Universal life insurance is a type of cash value life insurance with a saving component and low premiums. Under the terms of this insurance, excess premium payments is credited to the cash value of the policy and accumulates till maturity. This type of insurance policy can also provide a flexible premium option. Feel free to contact us for more information on universal life insurance in Brampton and Mississauga.

How does universal life insurance work?

This insurance policy has two components –a cost of insurance or COI amount and a saving component or cash value.

The COI is the minimum amount of premium payment required to keep the policy active. It can vary with the policy holder’s age, health and life expectancy.

The savings component consists of the collected excess that accumulates within the cash value portion of the policy.The cash value earns interest based on the current market rate. Policyholders can access a portion of this cash value without affecting the guaranteed death benefit.There are no tax implications for policyholders who borrow against the accumulated cash value of their policy.

However, it is important to note that the beneficiaries only receive the death benefit.

Why choose universal life insurance?

  1. Flexibility – These policies are designed to offer flexibility and can be adjusted to fit your personal needs. You can pay higher premiums more frequently, pay less premium, skip payments or even use the accumulated cash value to pay premiums.
  2. Easily available funding – Unlike a bank loan where you have to qualify based on your credit, you don’t need to qualify to take a loan out on a life insurance policy.
  3. Adjustable death benefit – You have the flexibility of lowering or increasing your death benefit at any time to suit your financial needs.
  4. Adjustable coverage – This insurance gives the policyholder the ability to choose a higher a higher cash value depending on what makes sense for each stage of life. This way you can meet any need at different times of your life.
  5. Lifelong coverage – This policy offers lifelong coverage at far lesser rates than whole life insurance policies. The cash value can also grow according to the performance of the insurer’s portfolio and can be used to pay premiums.

For more information on universal life insurance, get in touch with us now.


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